Moody’s lowers credit outlook of PNB, Bank of Baroda, Canara Bank

Moody’s lowers credit outlook of Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank.

Credit rating agency Moody’s on December 13, 2012 revised its rating outlook to NEGATIVE from STABLE for three public sector banks (PSBs), saying their worsening asset quality was exerting pressure on profitability and capital.

These three — Punjab National Bank, Bank of Baroda and Canara Bank — have witnessed a rise in both gross non-performing assets ( NPAs) and the restructured loan portfolio. Moody’s said these banks were particularly challenged by the prevailing operating environment, characterized by high inflation and high interest rates.

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